The NetProfit Report

I live in Slidell, Louisiana. Check that - I *used* to live in Slidell, Louisiana. Slidell is now really nothing more than a collection of abandoned and flooded buildings that over 35,000 people used to call home.

With all the media attention on New Orleans, it's easy to forget about the smaller, more rural areas that have also been destroyed, and will most likely never fully recover… areas like my town of Slidell.

In the aftermath of Hurricane Katrina, it became very apparent to me that my decision to work online full-time thirteen months ago has saved at least my sanity, and most likely my future. People who live in the suburbs of New Orleans generally fall into three categories.

Commuters: Folks that live in Slidell, and commute to New Orleans to work. These poor people most likely no longer have a house or a job. Sure, the ones that work for big corporations will most likely be able to get a transfer to a new location, but the ones working for small business are no going to be so lucky. The bridge from Slidell to New Orleans is gone, so even after all the cleanup is completed, and *assuming* that the small business they worked for still exists, how are they going to get to work each day? There is another bridge from Mandeville to New Orleans, but that's going to add 20 or 30 miles to their commute each way… A good majority of these people will simply not be returning, because they live paycheck-to-paycheck, and cannot afford to wait 2 or 3 months for the infrastructure to be restored.

Business Owners: There are quite a few people living in Slidell who own a business either in Slidell, or in New Orleans. Chances are, these people are not living paycheck to paycheck, but their source of income is now gone. The ones whose businesses are downtown can't even get there to try and salvage what they can. The ones whose businesses are in Slidell are not much better off - if their business survived the storm and flooding, there is no electricity or water, so they are going to have to wait for the infrastructure to be rebuilt before they can open for business again… however, because a majority of the commuters are simply not going to return, will there be enough of a customer base for their businesses to survive? These folks have thousands, or hundreds of thousands of dollars invested in their businesses, and although insurance will cover their direct losses, the loss of potential customers will most likely force these business owners to close their businesses forever.

Locals: People that live and work in Slidell. With no infrastructure, living and working in Slidell is currently impossible. The mayor of Slidell announced on CNN that it will most likely be 12 weeks before the electricity comes back on… who can sit around for 12 weeks without an income?? I don't expect there to be many of these people left when the lights come back on, either.

Now, consider the overall financial devestation that is about to take place for all of these middle-class, working Americans. You have no power or water for 12 weeks. Your job no longer exists (nor any job, for that matter). The bridge to where most of the jobs are is destroyed. Consider the mass exodus that is about to take place among the middle class from the New Orleans region, as they look for new jobs and homes.

Tell me - what is that going to do to real estate values in this area - even the real estate that was not damaged by the storm? Houses that were worth $150,000 two weeks ago may be worth $30,000 when the lights come back on. With no jobs, no easy way to commute to the jobs that may exist, and few businesses able to remain open, who is going to want to live anywhere near there? Remember, real estate is a supply and demand market - there is not going to be any demand… but there is going to be a TON of supply as people who have moved to new locations try to sell off their houses… because they can't afford two mortgages.

In 6 to 12 months, you're going to see a huge rash of bankruptcies and foreclosures because these people can't pay two mortgages, and can't sell their houses for anything near what they owe on them. I haven't seen anyone talking about this… but it is going to happen.

Now, let me explain exactly how Internet Marketing saved my life. I work online. I create software and other products, I run multiple money-generating websites, and I assist other people who are attempting to do the same. I quit my job thirteen months ago, still $80,000 in debt. Today, I'm debt free (with the exception of a mortgage), and make a decent amount of money each month. I'm not physically dependent upon anything but a laptop and an internet connection.

In fact, after evacuating for the storm, my entire business was back up and running 100% within 8 days - and that 8 days was spent finding a house in Texas to rent and getting a broadband connection installed. Because of the nature of online business, I made a few thousand dollars in income during this 8 days while not being able to actively work.

Now contrast that with the vast majority of folks who will be out of work, and possibly homeless, for quite some time - depending on government, or family, or charities for their very survival for many months.

My house was not destroyed… in fact, it was hardly even damaged. But with the upcoming exodus that I see happening, I fully expect that house to be practically worthless for quite some time. However, because I laid the groudwork for the past couple of years, I'm in a position where I am able to keep paying on my mortgage, while renting another house, as I wait for normalcy to return to the Greater New Orleans area.

When things are "pretty much back to normal" in Slidell, I'll be able to return to my house, without having to worry about trying to find a job, or commuting to the city… I'll have the choice to either return to Slidell, or stay in my new town… many. many people will not have such a choice.

Please don't take this as me "tooting my horn" or anything of the sort. No one was expecting anything like this to happen, least of all me. I'm trying to point out that, if you have been trying to establish an online business of any sort, keep at it! It's not easy, and it can't be done overnight - but it definately can be done. If you've thought about starting an online business, but haven't yet gotten started, do so! If a massive disaster hits your area, you may just find that internet marketing has saved your life as well.

This entry was posted on Thursday, September 8th, 2005 at 10:56 am and is filed under General, Online Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.